Welcome to spring! And of course the papers are full of failures in the market place: “59% clearance rate means that nobody is buying property”. This week there was a 24% increase in the total number of properties bought against the previous week. Last week there were just over 500 private sales and a similar number of auctions. This week there were 573 auctions and 685 private sales. All these numbers are courtesy of the REIV.
Further to this, the “Spring” selling season doesn’t really kick in until October. With cold, wet weekends, and the AFL final series taking up most of September, we usually find the market builds up slowly to a rush in October.
With RBA interest rates almost guaranteed to drop this week, the banks will probably offer something within the next couple of weeks. There is a good chance a further rate cut in November would push the prices up before Christmas. The “autumn” selling season starting in late January, should be very strong. The lack of new home building approvals and the lower than average number of sales this year will leave buyers outweighing sellers. There is only one thing that can happen when demand out strips supply. Prices will go up. We do not even have to factor in the rental crisis.
With the slow demise of the numbers of properties selling under the hammer at auction and the increase in the necessity to negotiate “one on one” with vastly experienced real estate agents, there has never been a greater need than now to get professional assistance when buying a property.
Call us on (03) 9523 1054 and book a no obligation meeting to discuss how we can assist you.
Ian James